Spackman posts US$4.8m Q1 profit on revenue from Korean film Master

SPACKMAN Entertainment Group swung into a first-quarter net profit of US$4.8 million as it recognised distribution revenue as a producer of the 2016 film Master.

On a per-share basis, profit was 1.04 US cents for the three months ended March 31 based on the number of shares issued after a March 20 placement. A year ago, the film production company reported a net loss of US$966,000, or 0.21 US cents per share based on the same number of issued shares. Without adjusting for the placement, Q1 net profit would have been 1.18 US cents per share, compared to a 0.24 US cent loss per share a year ago.

Revenue doubled to US$8 million as film production revenue jumped to US$3.8 million from a year-ago US$1.7 million on the back of the production of Golden Slumber. Spackman recognises production revenue to reflect the percentage of completion of the relevant film based on costs incurred relative to total expected costs.

Film distribution revenue also doubled to US$4.05 million, as proceeds from the box office and ancillary market for Master were firmed up.

Spackman will still have to collect on those sales, however. Trade receivables rose to US$7.9 million from a year-ago US$3.6 million, mainly due to US$3.6 million of uncollected receipts from Master and the acquisition of Frame Pictures.

Operating activities used up US$1.2 million of cash during the quarter, but cash and cash equivalents rose to US$9 million after Spackman received US$4.3 million from a share placement.